The Equilibrium, a key to success!

My first voice videos

Hello Guido,

Thank you very much for your kind words, producing the videos was more effort than I would have expected at first. When I cut my first video, I found it was just under 39 minutes long. The next video should be much shorter, but in the end it turned out to be 29 minutes, although I had already reduced it to the essentials.The problem is that there is not yet a comparable procedure in retail, as my charts are individually filtered and do not correspond to the standard. Thus there is no reference for the viewer to refer to. If one used a Fibonacci e.g., the viewer knows what is meant. A delta limit chart I work with did not exist before, so one have to go into it in more detail to explain it exactly.

We work in an area that requires a lot of explanation, so the length of the videos is less important than the content. The traders who are interested in this area will take a closer look at it in order to get ideas for their own trading. I'm just getting started with videos, but I think they'll get better over time. My standards are very high because I try to convey a very complex subject as simply as possible.

For this reason, I opened a new YouTube channel to post videos that build on each other. You can find the channel here:

Bionics Forex Algorithms

https://www.youtube.com/channel/UCCb...zsD2soUtb0CTqA

I have enough topics for videos, the challenge is to find the right order. Let's see if I can do that.

I wish you a successful trade and please stay healthy.

Kind regards Michael

3 bad trades

Hello Mos,

Thank you very much for your kind words, I was very happy about it. Basically, during the day, I try to record my trades to improve my entries and exits. That is why a recording program often runs in the background and records everything. On Friday I actually wanted to produce a voice video from my 3 bad trades, but first decided to post in Forex Factory.

3 bad trades

Five years ago, I would still have thought that these 3 trades went quite well because I was not stopped out and made a profit in the end. But from today's point of view, these 3 trades were a big disaster, because I took too much risk. My wife was happy with the result, but it was not enough for me. It is not important to earn as much money as possible, but to achieve the goals with the least risk. And that is the greatest challenge in this market.

I prefer a comprehensible loss to a surprising gain. I can avoid a comprehensible loss in the future, a surprising gain cannot be repeated because it is based on chance. Of course, you can optimize the probability of winning in trading with strategic money management. But to focus solely on that is an admission that all trade is built on chance. The strategies of the big players are not based on chance, but on a calculable constant. The pattern sequences for this can only be found in the algorithms and not in the price, the candles or in indicators. For this I use charts that work independent of time and volume.

Quantum physics has long since found its way into the stock exchanges, but Fourier spectra and correlations between price fluctuations and volatilities do not help me to generate risk assessments or forecasts. Because this view also only brings a random result in the end and is unsuitable for seconds trading. Likewise, the percolation theory is only dependent on probabilities and thus only random in the end.

When I see a vehicle that is moving, I don't want to calculate a probability in order to assess where it's going, but rather I have to find out who is at the wheel and in which direction he are steering at that moment. This is a big challenge, but in the end it can reduce the chance of chance. However, at the last moment the driver can still turn the steering wheel to change direction. But even this spontaneous reaction cannot be predicted with the best probability calculation.

The goal is to be as close as possible to the market in order to get the fastest information. I will deal with this intensively for the next few years, let's see where this path leads me.

Kind regards Michael

2 good trades in 2 minutes


Hello dear subscribers,


In my last post I showed you three different trades that went well in terms of quantity, but were of poor quality. Today I would like to show you two trades that were excellent in terms of both quantity and quality.



This picture was taken a few seconds before my first trade and I want to show you some aspects of why I entered this trade.

Point A
As of 8:00 a.m. this morning, the price was on a downward trend. Around 10:00 a.m. there was an upward movement for 1 hour. I once drew two lines for you to mark this upward movement. Basically, I don't work with such lines, because you can't deduce future movements from them. It was interesting to see that a larger number of asks were collected in the future market within this upward movement.

Point B
From 11:00 a.m., the course then went down more sharply and finally accelerated at Point B. In this area, I was looking for the optimal entry point for me.

Point C, D, E
At Point C & D, stronger iceberg orders were placed in the market 30 minutes beforehand in order to intercept the stops of the long traders. The price was pushed down and most long traders stopped at point D. The price ran up to Point E and you can clearly see that the volume of the stopped long traders decreased significantly.

Point F, G
In my cumulative trades chart (Point F) the limit buy orders are shown in the delta, which absorb at least ten lots within 1/1000 of a second. In addition, at Point G, I have listed the market orders in a delta display. These are the stops of the long traders, which, interestingly, are almost completely absorbed by the cumulative limit buy orders.

Point H
Here we see a graphic representation of the limit buy orders, you can see the strength with which they absorb the market sell orders.

Point I
In this chat I determine the equilibrium between the Limit Sell / Market Buy and Limit Buy / Market Sell orders. Here I could see that there was a greater equilibrium in the area of the best bid.

Point J
We can also clearly see that the strength in the Best Ask area has increased significantly. That's why I entered the market a second later.



First, let's take a look at an overview specially created by me. The green circles represent limit buy orders, provided that they have accumulated a certain minimum number of brand sell orders. The red circles represent limit sell orders, provided that they have accumulated a certain minimum number of market buy orders. The larger the circle, the greater the absorption of the market orders.

Point A
Here we see that a larger number of Ask were absorbed, which means that the dollar was bought here.

Point B
At first the price went down and there was a small pullback to the upside. In this brief upward movement, the dollar was massively bought.

Point C
The price went down, we are already seeing the first dollar sales and partial exits at Point C.

Point D
The dollar was bought again, but in a much smaller form.

Point E
In this somewhat stronger downward movement we can now see very strong exits from the dollar. At the low of Point E, the first euro purchases were made.

Point F
Initially, the course ran upwards in the range that I had already drawn in the previous slide. In this upward movement, massive Ask was collected.

Point G
From here there was one more stophunting down to absorb the stops of the long traders. This enabled the big players at Point H to buy the euro even more cheaply.

Point H
Here we can see that a massive number of asks were collected again. At Point I & J we see how the euro is being bought. From Point H, the price went up a total of 30 pips until 5:00 p.m. Point H's low was my preferred entry point.



At point A, I entered the market and 6 seconds later I placed another trade because I received clear signals. After about two and a half minutes I had this chart image in front of my eyes. That was about 10 seconds before I got out at Point B.

Point C
First, I registered that iceberg orders were placed at Point C at several price levels in order to intercept the market buy orders.

Point D
We recognize the first equilibrium in the area of the best ask. There is still no danger as there is also an equilibrium in the Best Bid area.

Point E
The strength in the Best Ask area still dominates the market, but there is already a significant increase in the Best Bid area. The stronger the best bid, the harder it is for the market buy orders to get through.



Let's first look at the summary of the two trades.

Point A
Although there was high volatility in the stop hunting down, I got into the market well with my first trade with a spread of 0.6. This gave me a stop of 1.4 pip. When I got the second signal, I couldn't wait long, so I had to accept a spread of 1.0. That was very unfortunate because it resulted in a stop of 1.0 pip.

Point B
The gross risk / reward ratio was higher on the second trade due to the larger spread. The first trade was significantly better and had a net risk / reward ratio of 3.

Point C
The number of pips within 2.5 minutes was fine.

Point D
My ultimate goal is at least 1.5 pip per minute, which I was able to clearly exceed.

Point E
The values achieved here were more than satisfactory for me. 2.18 pip per minute is a very good value.

Point F
The only point deduction is because I accepted a spread that was too high when I started. This time I was able to achieve 13 points out of 14 attainable points. Therefore, there is a significantly better grade for this trade than the 3 trades in my last post.



When I got the signal for my second trade, I didn't think twice and immediately entered the trade without paying any attention to the spread. Because of this, I almost got stopped out, but I was very lucky. If I had waited a bit after the signal I would have been able to enter the market with 0.6 pip. That would have given me more leeway in the area of my stop. With the blue arrow you can see how tight it got. With it I learned something again, although I was not stopped out.



Some of you might be wondering why I don't just let the trade go when I have a good start. There is a clear answer to that. Point A was the entry point and Point B the exit, after which a small equilibrium arose at Point C and the course ran back to Point D. Then it went up.

Point E
If I had run the trade to Point E, the result would have been 9 pip after 20 minutes. That's 0.45 pip per minute.

Point F
If I had run the trade to Point F, the result would have been 13 pip after 38 minutes. That's 0.34 pip per minute.

Of course I could have made 2.5 times more profits, but that would have meant staying in the market 17 times longer. And for me that is a significantly worse risk ratio.

Point G
With 2.2 pip per minute, I should have reached 44 pip after 20 minutes instead of 9 pip.

Point H
With 2.2 pip per minute, after 38 minutes instead of 13 pip, I should have actually reached 84 pip.

However, this is not possible because a course always moves in wavy lines up or down. For this reason I try to find the most effective candles, just put my orders in and quickly get them out again. With this approach, I basically don't care in which direction the course is moving. While it is helpful to know where the medium-term course is going. Based on the signals I receive from the algorithms, that is actually not decisive.



Point A
I could have entered the market this morning at 11:17 a.m. with two lots and a stop of 12 pip.

Point B
After 4 hours the course would have been close to my breakeven.

Point C
After 6 hours I would have hit the 30 pip goal and made $ 600 too. The stop would have had the same risk in both cases.

In all honesty, I prefer to trade for 2 minutes to achieve the same goal. First of all, I only briefly expose my money to risk in the market, and secondly, I have enough time afterwards to look for the next trade or to do other things.

Here is the video of my trade. You can find a few new tools on my main screen that I have developed over the last few days.



It is not easy to explain how I read out my filtered algorithms and use them as a signal for my trading. I gave a very good friend some small tools (reading out algorithms) of mine and he was able to break even within 1 year. However, that was also because he was very hard working and inquisitive, and worked more than most of us. I found that very remarkable. It usually takes a full-time trader 3-4 years to break even.

As I wrote, I can see a few 1/10 seconds into the future using the algorithms. Now, if I enter a trade on these signals, the longer I stay in that trade, the smaller the advantage. That's why I look for these signals during the day and use them to get in and out quickly. By now it should be clear to everyone why the price, indicators or news don't play a role at all for me. The big players make money, because they can move the market. The high-frequency traders earn money because they use the small time gaps in the equilibrium and are only briefly in the market in order to exploit their advantage. All other market participants lose their money in the long run. Since I do not have the big players' money, I am forced to use the funds available to me. Creativity, logic and speed are the only resources I have. In the last 10 years I have managed to do this very well and with the concentration on the algorithms I will definitely manage the next 10 years. The most important thing is that I am not attracted by the money I earn, but by the fact that I have a realistic chance against the best traders in the world. Since I trade in price regions where very few traders place a trade, I am practically invisible to the big players. So they don't even notice that I'm there. Precisely for this reason, I will not scale my lot line up, but always stay nicely below the radar. Since I am only effectively trading for around 10-15 minutes a day, there is enough time to study the approach of the big players. And you should take this time, because the big players test new strategies every week. The market is getting harder, not easier, every day. No matter how difficult the market is, each of us has a realistic chance. But that is a huge challenge and requires full concentration.

I wish you a good final sprint for the week

Kind regards Michael

New video is online
With the "pip/min" strategy to success


Hello dear traders,

Since I do my trades in a very narrow range, I have been approached by some traders about how I calculate my risk. At first, scalping is described as very risky and expensive, but this is a big mistake that I am talking about in my new video. In the last few years I have been looking for different ways to significantly reduce my trading time. It wasn't about earning as much money as possible in the shortest possible time, it was more a safety aspect. It was clear to me that the shorter I have been in the market, the sooner I will be able to keep the profits I have earned. I also wanted to increase my efficiency in the area of profits. I didn't want to wait 4 hours to earn a few $ 100. I wanted to cut the time down to a few minutes.

I like to use different auxiliary indicators to calculate my strategies and procedures. However, I do not utilize these indicators to generate trading signals from them. A crucial element for me is the pip per minute that I achieve in retail. This enables everyone to significantly increase their efficiency. Many of you are already working with my modified indicator.

You can find out in the video why most of my trades only take between 30 seconds to 2.5 minutes and the risk / reward ratio is not the measure of all things. This is about the efficiency of the candles and how you can benefit from them. Within an upward and downward movement there is the “Bionic Point”. This is the point where I reach the effective pip per minute within one movement and thus at the same time my decisive exit point. It's like the decision-making speed in air traffic, where you can still cancel a take-off.

Pictures in English, language in German

My videos are in German, but since there are more English-speaking traders than German-speaking traders, I decided on a compromise. The images and slides in my videos are in English and I deliberately speak a little slower when explaining complex matters so that the translation software from Youtube works. However, from time to time there are misunderstandings with the numbers. Because "billion" in English is not identical with our trillion, but with our billion. The reason for the differences in naming large numbers is that two different conventions have prevailed for naming numbers greater than a million: the long and short scales. But that shouldn't be a big problem.

My newly created YouTube channel has the advantage that I can now create my voice videos in chronological order. The viewer simply starts with video no. 1 and thus gets a clear overview.

Here you can find my new YouTube channel

https://www.youtube.com/channel/UCCb...zsD2soUtb0CTqA


If you always want to be informed as soon as a new video appears, you can also subscribe to the channel.

So far there are three videos with the following topics.

1. What content you can expect on this channel in the future!
2. How to double the probability of winning in the Forex market!
3. Scalping! With the "Pip / min" strategy to effective success

All videos are on average 30 minutes long

Here is the latest video from last night.



Even if you don't use algorithms to make your trading decisions in the future, these videos may give you some information that can increase your probability of winning. You can of course find the indicators that I use in the video on my blog.

I wish you much fun with it

Kind regards Michael

Superb, Michael.

Looking forward to checking the new videos out.

Thanks.

New video is online
With the "pip/min" strategy to success

Hello Lem,

that's very kind of you, thank you very much. Since you have a perfect command of the English language, I would be interested in how the translation of my videos on Youtube works from your point of view. I know that there are minor problems, the important thing is whether you can understand my approach. It would be great if you can give me a short feedback.

https://www.youtube.com/channel/UCCb...zsD2soUtb0CTqA


Kind regards Michael

I can certainly do that. I am planning on watching the latest video tonight or early tomorrow. Either way, I will get back to you as soon as I can.

Hi Michael

I downloaded your "Increase trading efficiency / Trading Effizienz steigern" and listened to it.

I am crazy about your entry sound/graphics. I relied on my school and university German - but see that I would really have to checkup on that again. The pace at which you talk is ok - no problem there. I will just look at again a few times.

Anyhow - you have made me realize that we could all benefit from trading more efficient - does not matter what we do.

Hope this helps you a bit.

Trade well / Mos
Edit: I made a point of following your "pointer" - that made it easier to follow.

Experiment: My answer to you, with a YouTube Video


Hello MOS,

At first I wanted to write you my answer in this blog, but this time we'll do it a little differently. As an experiment, I recorded a small video and had my text read out by my computer. It's relatively easy. First you have to create a PDF that you can open with Microsoft Edge. There you can set the language and voice and have an unlimited text read out to you. I think the voices sound very professional. With that entire books can be read aloud for free while you are in the market. That saves a lot of time. Here is my message to you:



In the future, you will be able to record a video directly with your mobile phone, which immediately translates your own language into all foreign languages, as well as the texts in the images. When making a phone call, the other person will then immediately receive the message translated into their own language. That will revolutionize communication.


Kind regards Michael

Hi

I am honoured to be the first(as far as I know) to receive an answer via video.

It was great - sent you a PM.

Cheers / Mos
Edit: I thought I recognized that "beat" from somewhere - excellent use of it.!

Hi Michael.

The new video was very informative and even with my very, very rusty German I was able to follow along, just about, with help from a couple of rewinds, lol.

I must admit though, that it is a shame not to have an English translation, however I know that would be difficult to perhaps make the subtleties understood. I know I certainly couldn't do it justice, not even close.

That aside, from a technical point of view, the pacing is fine and I wouldn't see anyone really struggling to keep up.

Now THIS is perfect!!!

The next video is online

Hello dear subscribers,

Here is my new video that I finished last night. This video is about: Workstation requirements, why the sounds are four times faster than the charts, neuroscience in brain research, and even body language. Why the knowledge of these things, for which algorithms trading are crucial, I will show you there exactly and prove it.



I will give you an explanation of my approach over the next few days.

Have fun with the video

Kind regards Michael

Video message in English


Hello dear algorithm traders,

in the video you get a statement from me in English

Inserted Video

As promised you can find the link from my new Youtube channel here. There you will find 4 videos with over 2 hours of content. Of course I will post new videos on this channel regularly.

My new Youtube Channel “Bionics Forex Algorithms”

https://www.youtube.com/channel/UCCb...zsD2soUtb0CTqA

Greetings Michael

Hi Bionics,

I am looking for an indicator that can mark the the number of bars of say 100 pips size from Open to High or Open to Low or Open to Close data of history.
Example, i want to see in one day what is the count of or how many times candles have scored user defined ..........pips size (example 6 pips) in Chart TF M1 from HH: MM in past lookback of 2 days. It

It is likely the number may be at least 1,000 candles for High to Low of 6 pips , 1200 candles of 4 pips, 2000 candles of 2 pips and less.

This can help in knowing how best to do scalping and in which hours of time. The Time period which shows high number of candle will be considered productive time hours.

If visualisation is needed, candles of the user selected pip sizes may be printed thick on the bars.
Statistics may be printed by way of text comments.

Momentum indicator


Hello Simnz,

I'm not sure if this is the indicator you're looking for, but it may help you. I modified the momentum indicator a few times and adapted it to my developed Bionic candle. There are 133 files on my profile page, if you click on them you get to the individual posts. Please take a look at the posts where I posted the momentum indicator, that might help you.

Here are some of the posts:

https://www.forexfactory.com/thread/...8#post10717698

https://www.forexfactory.com/thread/...4#post12542574

I hope this helps you

Kind regards Michael

Current videos


Hello dear subscribers,

Enclosed you will find all the latest videos on my channel.


Bionics Algorithms


Forex versus Forex


Increase trading efficiency


Fast and furious

Kind regards Michael

Inserted Video

The best currency pair

King regards Michael

Thank you for your response and help.

I don't know much about tick by tick flow. How it works?
But one thing I do understand is it is flow of trades by the market.
I want to place pending orders which means I want to see the glass full before triggering entry.
Is it possible if price can go faster and will not accumulate the full amount of position?
If that is true, it can help me not get bigger DD if the market suddenly gains high momentum.

You are a ticks flow expert and hope you will clarify this.

I want to enter only after say 4 pips have accumulated by the ticks before it starts trading . I don't want to get caught in a big flow. That is the objective.

Ticks in the forex market


Hello simnz,

A tick chart in the forex market only shows the trades that are processed there, but unfortunately not the volume. A trade can contain 1 lot or 100 lots. The tickchart has the advantage that in a great number of trading transactions, for example when economic figures are published, more candles appear than in night-time trading. An upward movement depends exclusively on the market buy orders that run into the limit sell orders. Let's assume a price goes up and suddenly it is held up by the limit sell orders. Theoretically there are now three options.

1. An equilibrium arises.
2. The price breaks the limit orders and continues to rise.
3. The price is held up by the limit orders and is falling.

If a price goes up by the market buy orders and is held up by the limit sell orders, there are only two options. A big player buys the dollar with the limit sell orders or exits the euro. That is the first challenge you have to face. If the big player pulls out of the euro, the chances are high that the price will make a new high. But there is no guarantee that the course will continue to rise immediately. Any upward or downward movement is always in zigzag lines. Many believe that after an upward movement, the price will go down because many retail traders exit the market. This is a big mistake, however, as retail traders are not able to move the market at all. Theoretically, they would be able to do this, but would have to coordinate themself exactly. In the EURUSD in the Forex market there are around 2000 lots at each level in the DoM. That means, in order to move the price by one pip, 20,000 lots have to be invested. For a price to run 5 pip down, 100,000 traders would have to get out of their 1 lot euro position almost simultaneously.

There are ways to determine with a high probability when a price is turning and when it is moving further up. There are different ways of looking at this that are not easy to explain with words. I am currently producing my 6th video, where I will go into exactly these points. So I ask for a little patience. I wish you a nice weekend.

Here is the link to the channel.

https://www.youtube.com/channel/UCCb...zsD2soUtb0CTqA


Kind regards Michael